UK hotel rates increase by 2.4 per cent in October

This was accompanied by a 0.3 percentage point decline in room occupancy to 81.1 per cent, according to HotStats

24/11/2017

Pictured: this year's Conservative party conference led to an 8.4 per cent hike in hotel rates in Manchester

Average room rates at UK hotels went up by 2.4 per cent in October to £116.11.

This was accompanied by a 0.3 percentage point decline in room occupancy to 81.1 per cent, according to the latest HotStats report.

In Manchester, an influx of 12,000 delegates to the four-day Conservative Party Conference in October, saw a 3.2 per cent increase in room occupancy to 87.5 per cent. This led to a rate hike of 8.4 per cent across the city, resulting in an average room rate of £106.47.

“Unlike Mrs May, who stumbled through her speech and was the victim of a number of unfortunate mishaps, Manchester hoteliers enjoyed the 2017 Conservative party conference as the buoyant demand levels enabled top and bottom line performance levels to soar,” said Pablo Alonso, CEO of HotStats.

At the other end of the M62, Leeds hotels saw a 2 per cent increase in average room rate to £81.16, while occupancy fell 1 point to 82 per cent.

Alonso added that a three per cent increase in consumer prices was likely to affect hotels in 2018.

He said: “According to the Bank of England, official data showed consumer prices increased by three per cent in the year to October 2017, the highest level in five years, led by growth in food prices and fuel costs.

“Whilst 2017 is shaping up to be another positive year of revenue and profit performance for hotels in the UK, owners and operators will do well to monitor any further increases in food prices, and indeed other costs, which could challenge profitability levels in 2018.”